The end result of exiting personal bankruptcy is that you discharge debts that are crushing your finances and perhaps even come out still owning your Georgia home or vehicle, but now you wonder if your credit will forever be tainted by your time in bankruptcy. While you can expect your bankruptcy to remain on your credit report for some time, according to Nerdwallet, it is not permanent.
Basically, your personal bankruptcy will remain on your credit report for a period of years, but how long it lasts depends on the type of bankruptcy you have filed. If you had filed for Chapter 13 bankruptcy, your report will keep the bankruptcy on record for seven years after the filing. A Chapter 7 bankruptcy will remain on your record for even longer, for a period of ten years. Once the allotted timespan has expired, the bankruptcy record should be removed from your credit report.
However, it is imperative that you check your credit report. Do not count on your record of bankruptcy being taken off when it is supposed to. Credit reports can contain reporting errors that lower your credit score, and if there is a delay in taking off your bankruptcy mark, it can be very harmful. Be sure that your report is fully updated and that crucial information is not omitted.
You should also be aware that just because a record of your bankruptcy remains on your report for some time, that does not mean banks will not give you a loan or a mortgage in the future. You can take steps to improve your credit score right away following bankruptcy. In addition to keeping your credit report up to date, you can begin boosting your score by using secured credit cards or a secured personal loan. These services accept a deposit as backing, and many institutions that offer them readily accept bankrupt filers as clients.
This article is intended to inform readers about personal bankruptcy, and should not be taken as legal advice.